Payment & Performance Surety Bonds are the ultimate in construction protection for a project owner. By providing a financial guarantee that the bonded contractor will perform according to the terms of the underlying contract and that all labor and material providers will be paid, keeping the project free of liens, the owner can be rest assured that the project will be completed.
These bonds are underwritten based on many different factors, including but not limited to the following:
- The underlying contract and the owners ability to financially support the project
- The financial strength and stability of the contractor
- The creditworthiness of the contractor and its owners
- The work to be performed and the contractors ability to perform
Rates for Payment and Performance Surety Bonds will vary with the qualifying factors of the account. A base rate is 3% of the contract amount or required bond amount.
Accounts are able to qualify for lower rates based upon factors such as credit, financial strength of the business, financial strength the business owners, prior experience performing bonded work, and the size of the contract.
Smaller contracts, under $350,000.00, are able to be written (in most cases) based solely on a credit report of the business owners. However, in some instances, there may be a requirement for additional information based on the information showing on the credit report.
What you will need to apply for a Payment & Performance Bonds:
Bid Bond Amount
For Single Jobs up to $1,000,000
For Single Jobs $1,000,000+
Business & Personal
What are Contract Surety Bonds? - Read to learn all about them.
Whether you are a small emerging contractor or a large existing contractor looking for a better rate, we have contract surety bonding programs available for all sizes of Payment & Performance Surety Bonds.
Ways To Apply for your Payment & Performance Surety Bonds:
Call Us at 800-737-4880
EMAIL US to request one of our staff contact you.